Grayscale’s Bitcoin Holdings Decrease as Blackrock and Fidelity Bitcoin ETFs Gain Traction

Grayscale's Bitcoin Holdings Decline

Recent data reveals a significant reduction in Grayscale's bitcoin holdings following an update on their website. The firm's most recent figures show a withdrawal of over 11,189 bitcoin, valued at approximately $477 million, from GBTC's reserves. This decrease brings Grayscale's total bitcoin holdings to 605,890.87 BTC, worth $25.84 billion as of January 17, 2024. The withdrawals occurred over a period of three days, starting from January 13, 2024.

Blackrock and Fidelity Bitcoin ETFs Expand Holdings

On the other hand, Blackrock's Ishares Bitcoin Trust has seen an increase in its bitcoin holdings. The trust currently holds 16,361 BTC, estimated to be worth $707.42 million. Similarly, the Fidelity Wise Origin Bitcoin Fund (FBTC) has experienced growth in its bitcoin holdings, which now stand at 12,112 BTC, valued at approximately $516 million. These ETFs have been gaining traction in the market.

Other Bitcoin ETFs Show Growth

Bitwise's BTCB fund has maintained its bitcoin holdings at 5,550 BTC since the last update on January 13, 2024. However, ARK 21shares Bitcoin ETF (ARKB) has reported an increase in holdings from 1,625 BTC to 2,535 BTC based on the latest data from January 16, 2024. Vaneck's HODL fund also saw an uptick in holdings, rising from 1,640.92 BTC to 1,867 BTC. The Galaxy Invesco ETF (BTCO) now holds 1,131 BTC, valued at around $48 million. Franklin Templeton's reported holdings remain unchanged at 1,131 BTC since January 13.

Impact on Grayscale's GBTC Holdings

Collectively, these bitcoin ETFs hold an estimated 40,751 BTC, which accounts for 6.725% of Grayscale's GBTC holdings. The decrease in Grayscale's bitcoin holdings and the rise of bitcoin ETFs have caught the attention of Bloomberg's senior ETF analyst Eric Balchunas. He commented on social media, highlighting the significant outflow from GBTC and the shrinking discount percentage.

What are your thoughts on the assets held by the newly introduced spot bitcoin ETFs? Share your opinions in the comments section below.

Frequently Asked Questions

How much gold should you have in your portfolio?

The amount of capital required will affect the amount you make. You can start small by investing $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. This will allow you to pay rent monthly, and not worry about it all at once. Only one month's rent is required.

You also need to consider what type of business you will run. In my case, we charge clients between $1000-2000/month, depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.

You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. Therefore, you might only get paid one time every six months.

You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.

I recommend starting with $1k-$2k in gold and working my way up.

How Much of Your IRA Should Include Precious Metals?

When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.

You could also consider buying physical coins like bullion bars, rounds or bullion bars. Shares in precious metals-producing companies could be an option. You might also want to use an IRA rollover program offered through your retirement plan provider.

You'll still get the benefit of precious metals no matter which country you live in. They are not stocks but offer long-term growth.

They also tend to appreciate over time, unlike traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.

Who owns the gold in a Gold IRA?

The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.

This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.

Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.

If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.

You should consult a financial planner or accountant to see what options are available to you.

How much money should I put into my Roth IRA?

Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the original deposit amount) cannot be touched. This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you are able to take out more that what you have initially contributed, you must pay taxes.

The second rule says that you cannot withdraw your earnings without paying income tax. When you withdraw, you will have to pay income tax. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's also say that you earn $10,000 per annum after contributing. This would mean that you would have to pay $3,500 in federal income tax. This leaves you with $6,500 remaining. Because you can only withdraw what you have initially contributed, this is all you can take out.

So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.

There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. You can withdraw your contributions plus interest from your traditional IRA when you retire. There are no restrictions on the amount you can withdraw from a Traditional IRA.

Roth IRAs are not allowed to allow you deductions for contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.


  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • You can only purchase gold bars at least 99.5% purity. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (

External Links

  • Yahoo Finance: Barrick Gold Corporation, (GOLD), Stock Prices, News, Quotes & History

How To

The History of Gold as an Asset

From the ancient days to the early 20th Century, gold was a common currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. It was also traded internationally due to its high value. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.

The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This resulted in a decline of foreign currency demand and an increase in the price. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. They needed to pay off debt because they had too much money coming into circulation. To do so, they decided to sell some of the excess gold back to Europe.

Most European countries distrusted the U.S. Dollar and began to accept gold as payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. Since then, the price of gold has increased significantly. Even though the price of gold fluctuates, it remains one the best investments you can make.

By: Jamie Redman
Title: Grayscale's Bitcoin Holdings Decrease as Blackrock and Fidelity Bitcoin ETFs Gain Traction
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Published Date: Wed, 17 Jan 2024 18:30:01 +0000

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